Full take up of energy efficiency loans for public sector
18 March 2010
Schools, hospitals and local authorities will save £244m in reduced energy bills, thanks to a £57m Government funded interest free loan programme that enables the installation of simple energy efficiency measures.
The Salix Energy Efficiency Loans (SEELS) fund administered by Salix Finance has been fully subscribed, less than one year after the launch of the scheme following the 2009 budget. Some 1,439 energy efficiency projects across 223 organisations are scheduled for completion over the coming months. This will save an estimated 95,000 tonnes of CO2 annually and some 1.45m tonnes over the lifetime of the projects.
All Salix funded projects use proven technologies that get quick results and continue to operate effectively for many years. These include upgraded lighting, insulation and heating, combined heat and power systems and improved IT controls systems to street lighting systems in order to prevent unnecessary energy use. The minimum funding award per application is £5,000, and on average projects will save enough money to repay the original investment from Salix Finance within three and a half years.
Alastair Keir, Chief Executive, Salix Finance Ltd said: “The enthusiastic response of organisations right across the public sector shows clearly that there is a great need for invest to save schemes such as SEELS, which get both costs and emissions down quickly. When budgets are under pressure the public sector won’t get the results that are expected of it without the focus which is provided by this form of dedicated financial support and monitoring. Targets alone won’t do the job. The Salix model demonstrates that a dedicated, returnable investment from Government, properly administered, can result in considerable savings to the public purse, year after year. ”
In Wales, a further £3.8m of loan funding has been provided by the Welsh Assembly Government, all of which has been allocated across 203 energy saving projects. These projects are forecast to generate lifetime energy efficiency savings in excess of £17m.
Salix Finance also administers a £95m recycling fund programme which enables public sector organisations to carry out energy saving projects through the application of CO2 reduction technologies and then re-invest the savings into further energy saving projects. To date, £73m (77%) of these funds have been committed by either Salix, HEFCE or our public sector clients. This has resulted in 2,877 projects being launched, which are forecast to generate lifetime energy savings in excess of £155m.
Salix Finance Ltd is an independent company that manages public investment in energy efficiency technologies across the UK public sector. Salix was originally awarded £51.5m for the SEELS programme but secured an additional £5.6m to meet very strong demand.
Salix receives funding from DECC via The Carbon Trust. Visit www.salixfinance.co.uk
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